Planned share pension is intended to stabilize pension contributions
Created: 12/08/2022, 12:00 p.m
By: Carina Blumenroth
Work all your life, then retire - but only have a fraction of the money you are used to.
The planned share pension is intended to protect pensioners.
If you still have your whole working life ahead of you, you might not be thinking directly about making provisions for old age.
The statutory pension insurance, into which employees pay, will sort it out somehow.
However, this can be a fallacy - because demographic change, among other things, is favoring the fact that many people in the baby boomer generation will soon be retiring.
On the other hand, not enough young people are entering the workforce.
The federal government now wants to set up a pension fund: the so-called share pension.
A “three-digit billion sum” is required for this, as Federal Finance Minister Lindner clarified on the short message service Twitter.
From 2023, the federal government wants to introduce share pensions.
To start with, ten billion euros will be made available from the budget.
© Andrey Popov/Imago
Share annuity: what is it actually?
The stock pension is to become part of the old-age provision, with part of the pension insurance contributions being invested in stock funds.
This system is already common practice in other countries, for example Sweden and Norway work with equity funds.
The coalition agreement of the traffic light government stated that the share pension should also be introduced in Germany.
The plan is for this to function as a capital cap for the pension system.
The aim is not to increase the pension for individuals, but to stabilize the contribution rate for all citizens.
The revenues are to be used specifically from the mid-2030s.
Our pension newsletter informs you every Wednesday about new developments relating to your pension.
Sign up now.
Where does the capital for the stock pension come from?
For the time being, the stock pension should not be built up with employee contributions, otherwise the pension insurance would receive too little income.
Instead, the federal government wants to build up the fund with budget funds.
Ten billion euros are planned for the start in 2023, as reported by
Finanztip
.
Federal Finance Minister Christian Lindner (FDP) points out in the
Tagesspiegel
that this is just the start.
So far, Lindner has ideas about how to get the money for it, but there is "no final decision-making by the federal government," as the
Tagesspiegel
reports.
Tax tricks: How to save money on your tax return
View photo gallery
Do I no longer need private pension insurance?
Because the goal of the proposed stock annuity is to stabilize contribution rates, it doesn't mean you'll get more money out of your pension fund contributions.
The statutory pension should therefore remain the same as planned.
For all employees who pay into the pension fund, the only attempt should be to keep the contribution rate stable for as long as possible.
Private provision is not necessarily unimportant as a result of the federal government's plan.